SEOUL, South Korea—In a move aimed at improving consumer protections, the South Korean government is requiring crypto exchanges in this country set aside a minimum of three-billion won—approximately $2.3 million—in bank accounts as a safeguard.
The new requirements apply to exchanges that have been issued accounts from real-name local banks and come into force starting from September, as per the “Virtual Asset Real-Name Account Operation Guidelines” published by the Korea Federation of Banks (KFB) in July this year, according to a report by Decrypt..
According to the guidelines, the three-billion won minimum cash reserves corresponds to 30% of crypto exchanges’ daily average deposits, or 3 billion won and higher. These reserves will be capped at 20 billion won, Decrypt said.
“While the new measures mean further expenses, major South Korean crypto exchanges with high trading volumes, such as Upbit and Bithumb, are not expected to face any significant issues implementing the new measures,” the report explained.
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